This video features an interview with Kishor Narn, a market expert with 20 years of experience, discussing strategies for future-proofing finances, with a particular focus on gold, silver, and other commodities. The discussion covers the current market dynamics, historical context, investment vehicles, and future predictions for these assets, alongside insights into geopolitical influences and consumer behavior.
Changes in interest rates and inflation significantly impact gold prices. When interest rates are high, holding assets like Fixed Deposits (FDs) that offer good returns becomes attractive, making gold less appealing. Conversely, when interest rates are low, the opportunity cost of holding gold (which doesn't pay interest) decreases, making it a more attractive option.
Inflation also plays a crucial role. If inflation is high and interest rates are low, the real return on savings can be negative (purchasing power decreases). In such scenarios, gold is seen as a hedge against inflation, as its value tends to hold or increase, preserving purchasing power. The video mentions that if inflation is 10% and FD rates are 6%, investors lose 4% of their purchasing power, whereas gold is expected to not lose value.
